shalimar productions ltd Management discussions

Pursuant to Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is as under:

In 2023, the Indian economy continued its trajectory of growth, albeit with some notable challenges. The nations robust domestic demand remained a key driver, bolstered by resilient consumer spending and government investments in infrastructure. However, the global economic landscape posed hurdles, with slowing international growth affecting exports. Despite these headwinds, Indias economy demonstrated resilience, posting a growth rate of approximately 6.1%. The governments initiatives to boost manufacturing and promote digitalization played pivotal roles in shaping the economic landscape. Challenges like inflation and fiscal deficits persisted, necessitating prudent economic management. Nevertheless, the Indian economy remained a dynamic and promising force on the global stage, poised for further expansion and development in the years to come.

COMPANY PROFILE &OVERVIEW

Your Company M/s. Shalimar Productions Limited (hereinafter referred as the "Company") was incorporated in 1985. In 2004 your Companys name was changed from Shalimar Agro Products Ltd to Shalimar Productions Ltd. Your Company is engaged in the business of Media and Media products. It has produced various regional albums & movies. In a dynamic market, your Company remains committed to its vision of solidifying its standing within the film and entertainment arena. The upcoming NJOYMAX OTT platform has enabled a strategic focus on content development, including original films and web series through which your Company is poised to tap into the burgeoning digital production industry. By harnessing its knowhow, extensive expertise, M/s. Shalimar Productions Limited is not only aligning with industry trends but also actively contributing to the growth and evolution of the Indian media and entertainment sector.

INDIAN MACROECONOMIC SCENARIO

The Indian Media and Entertainment (M&E) sector is emerging as a vibrant and rapidly growing segment of the economy. Demonstrating remarkable resilience, especially in the aftermath of the COVID-19 pandemic, this industry is poised for substantial expansion, driven by surging consumer demand and a noteworthy uptick in advertising revenue. Over the past decade, the M&E sector has been significantly shaped by the increasing prevalence of digitization and the widespread adoption of the internet. In fact, the internet has now become a primary platform for entertainment, serving diverse audiences across various mediums, including television, cinema, out-of-home (OOH) displays, radio, animation, visual effects (VFX), music, gaming, digital advertising, and print.

From traditional mediums like television, films, and radio to the digital frontier encompassing online streaming, gaming, and digital advertising, the media and entertainment (M&E) industry offers a rich tapestry of content. Indias M&E sector is on a remarkable trajectory, poised for impressive growth. The Indian Media & Entertainment industry is poised for remarkable growth, with projections estimating its expansion to reach $34.62 billion by 2025, driven by key segments like Live events, Animation, VFX, and online gaming. India has secured the 4th rank in "ICT Services exports," underscoring its global significance in this arena. Projections indicate that the industry is set to soar to a staggering $35.4 billion by 2025. Notably, the digital media segment is emerging as a powerhouse within the M&E landscape, with a robust 30% growth in 2022, propelling it to a value of $6.9 billion. The online gaming sector is another standout performer, experiencing a remarkable 34% growth in 2022, with expectations to reach $2.8 billion by 2025. As theaters made a comeback, the filmed entertainment segment witnessed an astonishing 85% surge in 2022, reclaiming 90% of its 2019 levels and generating substantial revenues of $1.2 billion from the release of over 1600 films. Additionally, the Animation & VFX segment experienced significant growth, expanding by 29% to achieve a value of $1.3 billion, with projections pointing toward a promising $2.3 billion by 2025. Looking ahead, the industry is expected to achieve even more substantial growth, with forecasts suggesting it could surge to a staggering $55-70 billion by 2030, boasting a robust CAGR of 10-12%. This future expansion will be spearheaded by OTT (Over-The-Top) platforms, Gaming, Animation, and VFX.

The significance of regional languages in Indias digital landscape is underscored by the fact that 93% of YouTube viewers prefer content in Hindi or other regional languages. The country also witnessed a considerable engagement in online sports content, with Indian audiences collectively spending over 1.9 billion hours, ranking among the highest globally.

The consumption of regional content in both TV and OTT platforms has grown substantially, reaching a 50% share in 2022. The Animation segment has experienced a surge in demand, particularly from OTT platforms and childrens channels. Additionally, the digital advertising sector showed robust growth, increasing by 30% to reach USD 6.1 billion in 2022, with further expectations of reaching $12.2 billion by 2027-2028.

OPPORTUNITY

Your Management identifies the following opportunities for the Company in the future:

• Rapid Growth: The Indian Media & Entertainment sector is witnessing significant and sustained growth, driven by factors like digitization, increased internet usage, and rising consumer demand.

• Diverse Avenues: This industry encompasses various segments, including television, films, out- of-home (OOH) advertising, radio, animation, visual effects (VFX), music, gaming, digital advertising, live events, and print media.

• COVID-19 Resilience: Despite challenges posed by the COVID-19 pandemic, the industry has showcased resilience and adaptability, particularly in digital and online entertainment.

• Regional Content: The consumption of regional language content has seen substantial growth, making it a crucial aspect of the industrys future.

• OTT Dominance: Over-The-Top (OTT) platforms are emerging as key players in the industry, reshaping how audiences access and consume content.

• Advertising Growth: Digital advertising has seen substantial growth, and it is expected to continue expanding, offering opportunities for marketers and content creators.

• Global Competitiveness: Indias standing in "ICT Services exports" reflects its competitiveness on the global stage.

• Future Potential: With a promising 10.5% CAGR, the industry is set to grow to $34.62 billion by 2025, with even more significant prospects anticipated by 2030.

• Youth Engagement: The industrys appeal to the youth, who are increasingly consuming content through digital platforms, is a significant driver of growth.

• Live Events: Live events, animation, VFX, and online gaming are emerging as prominent segments with substantial potential.

• Regional Content: The dominance of regional languages in content consumption is an opportunity for content creators to tap into diverse markets.

• Advertising Boom: Digital advertising is poised for robust growth, presenting opportunities for digital marketers and advertisers.

• Global Recognition: Indias position as a prominent player in ICT services exports highlights its competitiveness on the global stage.

• Regional Content: The significant share of regional content in TV and OTT consumption reflects the diversification of content preferences among audiences.

• Animation Demand: OTT platforms and childrens channels are driving a surge in demand for animation content.

• Digital Advertising: The digital advertising sector is expanding at a rapid pace, with projections of substantial growth in the coming years.

BUSINESS STRATEGY

The competition in Indian media industry remains intense. landscape continues to evolve rapidly. Your Company is committed to strengthening its position in the media and entertainment sector by leveraging cutting-edge technology, innovating content offerings, forging strategic partnerships, and capitalizing on the burgeoning digital media ecosystem.

Our strategic priorities for the year include:

a. Attaining Niche Market Leadership: In a fiercely competitive landscape, we remain dedicated to attain our leadership position in our niche innovative content and service offerings.

b. Diversification and Expansion: We aim to explore additional revenue streams, both traditional and non-traditional, while expanding our presence on emerging media platforms.

c. Optimized Investments and Cost Management: Our strategy involves prudent investments and a streamlined cost structure to ensure operational efficiency.

d. Content Excellence: Content remains king, and we will continue to prioritize content creation for OTTs, ensuring it resonates with diverse audiences - right from hinterlands of India to abroad.

By pursuing these strategic imperatives, we aim to thrive in a dynamic and competitive media landscape, delivering exceptional value to our stakeholders.

RISK FACTORS & UNCERTAINTIES

As a media and entertainment company specializing in content production for Over-The-Top (OTT) platforms, it is imperative that we comprehensively manage - assess and address - the potential challenges and uncertainties that impact our industry. The management of risk does not imply risk elimination but prudent risk management. The following discussion outlines some of these risk factors in a concise manner, allowing stakeholders to gain a clear understanding of the diverse array of challenges we navigate in our pursuit of delivering high- quality content to our audiences. It is important to note that the risks outlined herein are not exhaustive, and the actual impact of these factors may vary over time. We remain dedicated to monitoring, managing, and adapting to these risks as we continue to navigate the dynamic landscape of the media and entertainment industry. Here are some potential risk factors:

• Competitive Landscape: Intensifying Competition

• Talent Attrition: High Attrition Rates

• Software Procurement: Acquisition Risk

• Proactive Management: Risk Identification

• Piracy and Content Litigations: Copyright Challenges

• Cybersecurity Threats: Vulnerability to Attacks

• Dependency on Internet Infrastructure: Infrastructure Reliance

• Declining Physical Format: Format Popularity Decline

• Content Acquisition Costs: Escalating Procurement Expenses

• Changing Consumer Preferences: Shifting Consumer Tastes

• Intense Competition: Fierce Industry Competition

• Content Quality: Consistency Vital

• Regulatory Changes: Evolving Regulations Impact

• Regulatory Framework: Policy Influence

• Monetization Challenges: Balancing Revenue Models

• Global Market Risks: International Expansion Risks

• Production Delays: Unforeseen Delays

• Pandemic and Health Risks: Health Crisis Impact

• Supply Chain Disruptions: Delayed Supply Chain

• Environmental Risks: Natural Disasters Impact

• Intellectual Property Risks: Copyright and IP Challenges

FORWARD LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations, many of which are discussed in the Risk Factors section of this MDAR, are accurate or will be realized. The Companys actual results, performance, or achievements can thus differ materially from those projected in any such forward-looking statements.

Given the dynamic nature of the media and entertainment industry, as well as the multitude of risks outlined in the MDAR, readers are advised to consider the potential impact of these risks on the accuracy of forward-looking statements. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements, on the basis of any subsequent developments, information, or events.

Investors and stakeholders should exercise caution and refer to the Risk Factors section of this MDAR for a comprehensive understanding of the risks and uncertainties that may affect the Companys future performance.

By Order of the Board of Directors For Shalimar Productions Limited

	Sd/-	Sd/-
	(TilokchandKothari)	(Vikramjit Singh Gill)
Place: Mumbai	Director	Director
Date: 12.05.2023	(DIN: 00412637)	(DIN: 08875328)